SEC Allows Broader Use of Social Media for Investment Manager AdvertisingApr16

Social media has been a game changer when it comes to consumers and their ability to research and review companies or services online. Many service providers, including investment advisors, have some form of social media presence including blogs, Twitter, LinkedIn, and others. The SEC recently issued guidelines on what is, and what is not, acceptable from a public commentary and social media perspective. In particular they issued advice to assist firms in applying Section 206(4) of the Investment Advisors Act of 1940 and Rule 206(4)-1(a)(1), the “Testimonial Rule”, on the use of social media. These guidelines concentrate on the use of online testimonials and third-party commentary.

In the following White Paper, Sadis Goldberg LLP provides a snapshot of the new guidance from the SEC: